City launches first $100 million sustainability bond

The City of Vancouver issued its first sustainability bond offering of $100 million today to fund environmentally and socially sustainable initiatives and projects, while offering investors competitive returns. This is the first sustainability bond issued by any Canadian government entity, and was very well received by the investment community, with demand of approximately four times the issuance size.
 
Under our Sustainability Bond Framework PDF file (64 KB), net proceeds are used to finance Council-approved capital projects that support our commitment to positive environmental goals, social responsibility, and economic development across our communities.

Eligible projects

Projects approved in our current capital plan and eligible for funding under the sustainability bond include:

Fire Hall 12 Seismic Upgrades

• Supports access to public fire and emergency response, given this fire hall covers a relatively large residential and commercial area in the city. Building improvements will also positively improve energy performance and reduce carbon emissions.

Renewal of Sunset Service Yard

• This renewal will help reduce carbon emissions and help meet zero emission building targets. The yard provides essential services including supporting green space maintenance across the city.

The bond pays a 2.3% coupon interest rate and matures on November 5, 2031. View the investor presentation PDF file (6 MB) 

Credit ratings 

Vancouver’s credit ratings (AAA – S&P, Aaa – Moody’s) continue to be among the best municipal ratings in Canada, making our debentures an attractive investment in both domestic and international markets.
 
Learn more about Vancouver’s Sustainability Debenture program.

Quotes

Chief Financial Officer Patrice Impey

“Social, economic, and environmental sustainability are long-term values that are championed through a wide range of City strategies and initiatives,” said Chief Financial Officer Patrice Impey. “Sustainability bonds offer an investment tool that will support the City’s efforts to build sustainable infrastructure for many generations to come.”